Monetary policy

Every coin has two sides and that is the case with a possible September rate cut.

Federal Reserve Bank of Boston President Eric Rosengren continued to push back against further interest-rate cuts by the central bank.

By the end of the week the municipal bond market should have a better idea of what Federal Reserve officials are thinking.

Federal Reserve Bank of Minneapolis President Neel Kashkari said recession risks have risen “quite a bit” and the central bank should be ready to cut interest rates again to protect the U.S. economy.

The debate over yield curve inversion continued, as a summer Friday yielded little economic data, but the market waits to parse the minutes of the most recent Federal Open Market Committee and then eyes will turn to the Federal Reserve Bank of Kansas City’s annual Jackson Hole retreat.

The municipal bond market received a variety of data Thursday suggesting economic strength belying the recession forecast by the 2/10-year Treasury yield curve inversion on Wednesday.

Federal Reserve Bank of St. Louis President James Bullard called current U.S. economic conditions “quite good” and said the goal of the central bank’s policy framework review should be to avoid a Japan-style deflationary trap.

This part of the curve inverted for the first time since June 2007.

While the consumer price index climbed 0.3% in July, as did the core rate, the broad-based increases are unlikely to continue, according to analysts.

While Monday’s data was low-tier, this week will feature several economic reports that will offer data the Federal Reserve will parse in advance of its September meeting.